World Bank Reports Most G-20 Countries Have Broken Pledge to Avoid Protectionist Measures
The World Bank has issued report announcing that several countries, including 17 of the G-20 countries1, have implemented 47 trade restrictive measures, including import duties, import bans, and subsidies, since November 15, 2008.
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(On November 15, 2008, G-20 leaders signed a pledge to avoid protectionist measures.)
Protectionist Measures Shut Out Exporters from Specific Markets
World Bank states that although the effects of these protectionist measures so far are likely minor relative to the size of unaffected markets, they have a significant negative effect on particular exporters shut out of protected markets. Implemented protectionist measures affecting specific export markets include the following (partial list):
Increased tariffs, non-tariff measures. The World Bank study states that Russia has raised tariffs on used autos, and Ecuador raised tariffs on more than 600 items.
Non-tariff measures include such policies as Argentina's imposition of non-automatic licensing requirements on auto parts, textiles, TVs, toys, shoes, and leather goods; and Indonesia's requirement that five categories of goods (including garments, footwear, toys, electronics, food and beverages) are permitted in only five ports and airports.
New export subsidies, increased export rebates. The European Union has announced new export subsidies on butter, cheese, and milk powder.
Also, both China and India have recently increased the rebate on the duty drawback system for exporters.
Proposed auto industry subsidies. Subsidies proposed for the auto industry have proliferated. In addition to the U.S. direct subsidy to its three national companies, Canada, France, Germany, United Kingdom, China, Argentina, Brazil, Sweden and Italy have also provided direct or indirect subsidies - not including Australia's support to its car dealers and South Korea's and Portugal's support to their component suppliers.
(See World Bank report for additional data, including data on recent increases in antidumping cases.)
1The Group of Twenty Finance Ministers and Central Bank Governors, which represent: Argentina; Australia; Brazil; Canada; China; France; Germany; India; Indonesia; Italy; Japan; Mexico; Russia; Saudi Arabia; South Africa; South Korea; Turkey, the United Kingdom; the U.S., and the European Union.
World Bank report (dated 03/02/09) available at http://siteresources.worldbank.org/NEWS/Resources/Trade_Note_37.pdf
World Bank press release (dated 03/17/09) available at http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22105847pagePK:64257043piPK:437376theSitePK:4607,00.html